Mgt402 Solution
Monday, November 26, 2012 Edit This
Here is what I think, since we have a bumper cotton crop, we will not increase any other prices except for the ones asked by the question.
That way:
Moving on ,
EOQ = [(2xRUxOC)/(UCxCC%)]^1/2
Total Ordering Cost= Required Units/Order Quantity = Number of Orders
= Number of Orders x Cost per Order
Total Carrying Cost = Ordering Quantity/2 = Average Ordering Quantity
=Carry Cost per Unit = Unit Cost x CC%
= Average Ordering Quantity x Carrying Cost Per Unit
Total Cost = Total Ordering Cost x Total Carrying Cost
Per Unit Cost = Total Cost/Order Quantity
Hence Accountant is right.
complete solution available at Virtual University of Pakistan
That way:
Moving on ,
EOQ = [(2xRUxOC)/(UCxCC%)]^1/2
Total Ordering Cost= Required Units/Order Quantity = Number of Orders
= Number of Orders x Cost per Order
Total Carrying Cost = Ordering Quantity/2 = Average Ordering Quantity
=Carry Cost per Unit = Unit Cost x CC%
= Average Ordering Quantity x Carrying Cost Per Unit
Total Cost = Total Ordering Cost x Total Carrying Cost
Per Unit Cost = Total Cost/Order Quantity
Hence Accountant is right.
complete solution available at Virtual University of Pakistan
